Euro Garages’ parent company EG Group has agreed a deal to acquire Asda’s petrol filling stations, car washes and ancillary land for £750m.
The announcement follows the earlier deal on 2 October 2020, for the shareholders in EG Group, the Issa brothers and TDR Capital, to take over Asda Group.
EG’s acquisition of the forecourt business is subject to the same CMA regulatory clearance being received by the group’s shareholders for their acquisition of Asda. Subject to these approvals, the transaction is expected to close in the second quarter of 2021.
In the announcement of the deal EG Group said: “A detailed integration plan will ensure a seamless transition into EG Group’s UK operations, which have successfully integrated four significant acquisitions since 2015. The forecourts, which will remain an integral part of the broader retail locations where they are situated, will continue to be Asda branded and will remain a price leader in the fuel market.”
Zuber Issa CBE and Mohsin Issa CBE, co-founders and co-CEOs of EG Group, in a joint statement, said: “We are excited to have the opportunity to further strengthen our network in the UK through the proposed acquisition of Asda’s forecourt business, which will enhance our position as a major independent forecourt operator and provide a platform for future growth of the combined network.”
In the most recent Forecourt Trader Fuel Market Review Asda had 321 forecourts. If the deal is approved this would mean EG Group would have around 700 forecourts in the UK, consolidating its second position in the Forecourt Trader Top 50 Indies, but still behind MFG with more than 900 sites.
[source: Forecourt Trader online]